£50K to invest on behalf of 85 year old neighbour!
Discussion
Hi folks,
I could do with a wee bit of help!
IFAs are a good idea, but as is often said on here, where do you find these guys!
I'm doing my best to help my neighbour, and dear friend, at a very difficult time.
We've managed to sort out a number of big issues.
Looking to invest £50K for capital growth, medium term, medium risk.
ISA allowance used up each year.
Any ideas?
HL offer good managed funds (the multi-manager balanced fund sounds good, more so for the longer term.
Any ideas/suggestions folks?
I'm aware of similar thread titles on here, but quite different circumstances this time!!
Much appreciated.
Jazzer
I could do with a wee bit of help!
IFAs are a good idea, but as is often said on here, where do you find these guys!
I'm doing my best to help my neighbour, and dear friend, at a very difficult time.
We've managed to sort out a number of big issues.
Looking to invest £50K for capital growth, medium term, medium risk.
ISA allowance used up each year.
Any ideas?
HL offer good managed funds (the multi-manager balanced fund sounds good, more so for the longer term.
Any ideas/suggestions folks?
I'm aware of similar thread titles on here, but quite different circumstances this time!!
Much appreciated.
Jazzer
Jazzer,
Only invest if you have goals. Would your mate instead just want access and liquidity, and the ability to spend it all? If so, save money and keep it in a bank savings account, but tiered. Say, 5k instant access, 5k 6 months, 5k 12 months etc? Things are too volatile and uncertain right now for what could be quite short term goals.
Only invest if you have goals. Would your mate instead just want access and liquidity, and the ability to spend it all? If so, save money and keep it in a bank savings account, but tiered. Say, 5k instant access, 5k 6 months, 5k 12 months etc? Things are too volatile and uncertain right now for what could be quite short term goals.
Jazzer said:
Hi folks,
I could do with a wee bit of help!
IFAs are a good idea, but as is often said on here, where do you find these guys!
I'm doing my best to help my neighbour, and dear friend, at a very difficult time.
We've managed to sort out a number of big issues.
Looking to invest £50K for capital growth, medium term, medium risk.
ISA allowance used up each year.
Any ideas?
HL offer good managed funds (the multi-manager balanced fund sounds good, more so for the longer term.
Any ideas/suggestions folks?
I'm aware of similar thread titles on here, but quite different circumstances this time!!
Much appreciated.
Jazzer
85 years oldI could do with a wee bit of help!
IFAs are a good idea, but as is often said on here, where do you find these guys!
I'm doing my best to help my neighbour, and dear friend, at a very difficult time.
We've managed to sort out a number of big issues.
Looking to invest £50K for capital growth, medium term, medium risk.
ISA allowance used up each year.
Any ideas?
HL offer good managed funds (the multi-manager balanced fund sounds good, more so for the longer term.
Any ideas/suggestions folks?
I'm aware of similar thread titles on here, but quite different circumstances this time!!
Much appreciated.
Jazzer
Medium term investment horizon
...does not compute....
Just because the lady is 85, it doesn't mean she hasn't got a grasp of her facilities and there is no law which says she can't invest.. we haven't got to that extent yet. But an adviser will have a huge hurdle to leap to demonstrate that it is going to be in the client's best interests.
Even if the client becomes an insistent one, an adviser will tread carefully and pay particular attention to need for cash in the event of illness and other aspects of her estate.
Notwithstanding that, assuming you're looking at investment options, then HL is an expensive contract. If the client's remit is 'to grow wealth', then the bias changes from sexy websites, headline returns and other assorted functionality to reduction in yield. In itself, that shuffles HL right down the pecking order - and anyway, why do you need a platform anyway, why not consider a direct investment if that *is* the best thing for the client?
If you have a power of attorney, look at various direct to consumer options which will provide her with far lower costs, and therefore, higher returns and growth. Look at cheap and cheerful trackers, in particular Vanguard and those with lower inclination to volatility - if I was 85, I'd be pretty upset if I was tracking the FTSE these days with only a few years investment timeline, if the objective was to grow wealth.
On a personal note, if I thought that a client wasn't completely up to speed on what was happening with the money, then at that age, it would be a matter of chatting with the power of attorney anyway, who would/could veto the idea if one that had control over financial matters had been activated.
I'm not saying we must treat older people like babies, but the framework exists these days, to give them far greater protection from sharks and to approach the process from a different, 'safer' default position.
Even if the client becomes an insistent one, an adviser will tread carefully and pay particular attention to need for cash in the event of illness and other aspects of her estate.
Notwithstanding that, assuming you're looking at investment options, then HL is an expensive contract. If the client's remit is 'to grow wealth', then the bias changes from sexy websites, headline returns and other assorted functionality to reduction in yield. In itself, that shuffles HL right down the pecking order - and anyway, why do you need a platform anyway, why not consider a direct investment if that *is* the best thing for the client?
If you have a power of attorney, look at various direct to consumer options which will provide her with far lower costs, and therefore, higher returns and growth. Look at cheap and cheerful trackers, in particular Vanguard and those with lower inclination to volatility - if I was 85, I'd be pretty upset if I was tracking the FTSE these days with only a few years investment timeline, if the objective was to grow wealth.
On a personal note, if I thought that a client wasn't completely up to speed on what was happening with the money, then at that age, it would be a matter of chatting with the power of attorney anyway, who would/could veto the idea if one that had control over financial matters had been activated.
I'm not saying we must treat older people like babies, but the framework exists these days, to give them far greater protection from sharks and to approach the process from a different, 'safer' default position.
Ginge R said:
Just because the lady is 85, it doesn't mean she hasn't got a grasp of her facilities and there is no law which says she can't invest.. we haven't got to that extent yet. But an adviser will have a huge hurdle to leap to demonstrate that it is going to be in the client's best interests.
Even if the client becomes an insistent one, an adviser will tread carefully and pay particular attention to need for cash in the event of illness and other aspects of her estate.
Notwithstanding that, assuming you're looking at investment options, then HL is an expensive contract. If the client's remit is 'to grow wealth', then the bias changes from sexy websites, headline returns and other assorted functionality to reduction in yield. In itself, that shuffles HL right down the pecking order - and anyway, why do you need a platform anyway, why not consider a direct investment if that *is* the best thing for the client?
If you have a power of attorney, look at various direct to consumer options which will provide her with far lower costs, and therefore, higher returns and growth. Look at cheap and cheerful trackers, in particular Vanguard and those with lower inclination to volatility - if I was 85, I'd be pretty upset if I was tracking the FTSE these days with only a few years investment timeline, if the objective was to grow wealth.
On a personal note, if I thought that a client wasn't completely up to speed on what was happening with the money, then at that age, it would be a matter of chatting with the power of attorney anyway, who would/could veto the idea if one that had control over financial matters had been activated.
I'm not saying we must treat older people like babies, but the framework exists these days, to give them far greater protection from sharks and to approach the process from a different, 'safer' default position.
Thanks for taking the time to reply so helpfully and at such length.Even if the client becomes an insistent one, an adviser will tread carefully and pay particular attention to need for cash in the event of illness and other aspects of her estate.
Notwithstanding that, assuming you're looking at investment options, then HL is an expensive contract. If the client's remit is 'to grow wealth', then the bias changes from sexy websites, headline returns and other assorted functionality to reduction in yield. In itself, that shuffles HL right down the pecking order - and anyway, why do you need a platform anyway, why not consider a direct investment if that *is* the best thing for the client?
If you have a power of attorney, look at various direct to consumer options which will provide her with far lower costs, and therefore, higher returns and growth. Look at cheap and cheerful trackers, in particular Vanguard and those with lower inclination to volatility - if I was 85, I'd be pretty upset if I was tracking the FTSE these days with only a few years investment timeline, if the objective was to grow wealth.
On a personal note, if I thought that a client wasn't completely up to speed on what was happening with the money, then at that age, it would be a matter of chatting with the power of attorney anyway, who would/could veto the idea if one that had control over financial matters had been activated.
I'm not saying we must treat older people like babies, but the framework exists these days, to give them far greater protection from sharks and to approach the process from a different, 'safer' default position.
She's a very young 85 year old, sharp as a tac.
You've steered me away from HL, made me think differently.
I'll let you know what we do.
Jazzer
Jazzer said:
Thanks for taking the time to reply so helpfully and at such length.
She's a very young 85 year old, sharp as a tac.
You've steered me away from HL, made me think differently.
I'll let you know what we do.
Jazzer
No sweat, hope she gets a good result. Take a look at NSI. If she likes the idea of a flutter, if she is really that smart and switched on she could consider a really small amount in a "play fund" which will keep her engaged, interested and enthusiastic without jeapordising the big picture.She's a very young 85 year old, sharp as a tac.
You've steered me away from HL, made me think differently.
I'll let you know what we do.
Jazzer
Why should old folk be considered by default to be mentally infirm, batty and helpless? They shouldn't. But the world of investing means that even younger minds have trouble sometimes, keeping up. I would tread very carefully not to create uncertainty and worry; at her age, a little dip in fund performance could create worry quite quickly and that is what no one wants. Least of all, I understand completely, you who wants to help.
http://www.nsandi.com/savings
Don't hesitate to ask if you need more info.
Jazzer said:
Hi folks,
ISA allowance used up each year.
Any ideas?
HL offer good managed funds (the multi-manager balanced fund sounds good, more so for the longer term.
Any ideas/suggestions folks?
I'm aware of similar thread titles on here, but quite different circumstances this time!!
Much appreciated.
Jazzer
is it just the cash isa is used every year or also the stock and shares isa?ISA allowance used up each year.
Any ideas?
HL offer good managed funds (the multi-manager balanced fund sounds good, more so for the longer term.
Any ideas/suggestions folks?
I'm aware of similar thread titles on here, but quite different circumstances this time!!
Much appreciated.
Jazzer
Ideally what does she want to do with the money ? preserve it and grow it to pass down the next of kin?
Ginge R is bang on the money. Unless an investor has a requirement for risk, they should avoid it in the regulator's eyes. It doesn't help when you have a switched-on but elderly client who likes to speculate!
I follow a "vulnerable client" policy of asking for Attorneys or siblings/children/potential beneficiaries to be included in the conversation where possible.
I follow a "vulnerable client" policy of asking for Attorneys or siblings/children/potential beneficiaries to be included in the conversation where possible.
[quote=jonny70]
is it just the cash isa is used every year or also the stock and shares isa?
Ideally what does she want to do with the money ? preserve it and grow it to pass down the next of kin?
The stocks and shares ISA is fully funded each year.
She just wants to grow the money, as she resents terrible returns on deposit etc
L&G Index Tracker Funds look quite interesting, as pointed out elsewhere.
For instance, The Global Technology Index Trust offers the potential for significant growth, but is considered to be towards the high risk end of the spectrum.
Likewise for the International and US trusts.
She is happy with the risk profile.
What do you think??
Thanks again for the excellent advice and help.
Jazzer
is it just the cash isa is used every year or also the stock and shares isa?
Ideally what does she want to do with the money ? preserve it and grow it to pass down the next of kin?
The stocks and shares ISA is fully funded each year.
She just wants to grow the money, as she resents terrible returns on deposit etc
L&G Index Tracker Funds look quite interesting, as pointed out elsewhere.
For instance, The Global Technology Index Trust offers the potential for significant growth, but is considered to be towards the high risk end of the spectrum.
Likewise for the International and US trusts.
She is happy with the risk profile.
What do you think??
Thanks again for the excellent advice and help.
Jazzer
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